Increasing Returns to Scale in Production Means

question 110

Multiple Choice

Increasing returns to scale in production means:

• A) more than 10% as much of all inputs are required to increase output 10%.
• B) less than twice as much of all inputs are required to double output.
• C) more than twice as much of only one input is required to double output.
• D) isoquants must be linear.

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Definitions:

Maximizing Profits

The process or strategy of adjusting the operations, pricing, and production of a business to generate the highest possible profit margins.

Development Costs

Costs incurred in the design and development phase of a project, often relating to the creation of new products or services.

Variable Costs

Expenses that change in proportion to the level of production or business activity.

Sales Commissions

The payment made to sales personnel, often calculated as a percentage of the sales they generate, as a reward for their efforts in selling products or services.